The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1887-01-13

state action. The problem cannot, however
eneiy 1n the
lion by the adoption OF a federal policy which
shall have In view the determination Of Ques-
lions relating to interstate commerce. The
public sentiment OF the country, with marked
anan1Enity, is demanding OF congress legislation
TO this end. It remains to be seen how long ad-
verse influences shall postpone its enactment.
Fhe commissioners recommend such amend
ments and changes in the law as their expert
ence and Investigations have suggested are
to make 1t more effective. bespeak
[oF them your hearty Endorsement, and earn
sstly invoke your early action respecting the
Aadltlcnal legislation contemplated In the drafts
Of laws they submit for your consideration
Clearly. IN my view, the commissioners should
be authorized TO revise and amend the tariffs of
The railroad companies respecting rates charged
for trans portation Of freight and passengers. II
upon complaint. or otherwise. it SHALL appear to
such rates are in any respect unequal, unjust
OF unreasonable" it should be authorized to
qntre and compel suca changes as shall mako
them equal, reasonable and just. There can be
no good ground OF objection to this regulation
upon the part Of the companies themselves. In
DEED. they should rather wish to see It estab-
llshed, as the process OF its enforcement would
give opportunity 1or such vindicat,on OF their
equitable policy respecting the U5lic as tho
facts in each case would warrant.
The excessive and fictitious Capitalization of
the property OF railway companies is 4 proper
subject for legislative consideration It Is no.
toriouSly the practice Of these companies, after
from he sale of their bonds money
sufficient to build and equip their lines, to issue
In addition stCc!. o an equal OR greater amount.
rs q rule value whatever, bur
as Z graluity by tie syndicate
the franchises Of the colnDaIy. To
clve these falls, issues Ct securities real value,
mist be earned by the road and paid
thereon. The practical effect OF this is the perpe-
trat1on OF fraud upon the public Rates oflTans-
portatlon must he fixed high enough to realize
net earnings sufficient to pay these dividends
after fixed charges are met. AS rule. if COM
plant is made that rates are high and that
mOdltleS will not bea, cost Of transportation.
the company responds that it is charging only
what is necessary to earn fair incume upon its
investment. and, perhaps refers to its sworn
statements made to the board OF commissioners
as to the amount Of such Investment, which al
ways includes such overiSsue Of securities
This practice docs not require elaboration to ex-
pose Its oppressive AID dishonest character, but
IL loudly calls for relneuy The drafts tor acts
propoposed by the commissioners. to prohibit
the issuing of false, fraudulent, and part-pad
or unpaid shares of stock of railroad COM
panles. and to regulate the proceedings OF
railroad Companies desiring to increase their
capital stock, will protect the Eub.ic against
growth of the evil. The evident remcty as re-
CARDS existing CORPORATE las. Is an adjustment
OF their revenues and dividends upon the basis
of fair aud liberal est innate OF the actual cost
or value OF their properties.
The incorporation into the fundamental law OF
the state of an amendment asserting the full
power OF the state as to corporate control is .
recommendation Of the commissioners in which
cordially concur. Though this principle is
ustained by the courts it is not wilnlly admit
ted by the corporations. AS an authority COM
Ing IRON the constitution it would command &C
Quiescence.
The l&bors OF the board under the law for the
regulation Of warehouses and the InsDectiOn az
grain have resulted i'll the inaugural ion Of sys-
ten OF state inspection and weighing which has
worked most satlsiac' Only. The grades estab-
lshed and rules adopted by the board for the
handling of grain have had the effect to remove
the cause tor much of the complaint that had
existed among farmers and country shippers, II
irregularities and abuses respecting The tisi,osi-
ton OF their property. Minnesota grades Of
wheat are the now recognized standard in East
ern aad European markets.. and the integrity OF
our state inspection commands the full conf
dence Of the trade. Undoubtedly tie adoption
OF this system has added app.ecably to tbs
market value of our wheat, ami resulted in real
lzlng much more to the producer thai, he would
have received under the Old order of things
lac grades and rules OF inspection as first cs-
tabllsheQ proved SO satisfactory hat any change
III thenl WAS generally objected TO by farmers
and dealers al the commencement OF the PRES
ent crop year.
Some amendments to the law correcting i'm
projections. widening its scope ard extending
the supervision of the commissioners to
country eievatcrS ana Warehouses, are recon-
melded by cka bead.
The successful results achieved under the rail-
road and wa<cLouse laws have been so largely
due to :h: ability. i'll ustry and aptitude for
their work OF the commissioning, that feel they
have nav canned the thanks Of the people Of
slons from the railro.d companies greater than
have ever been accorded to any state railroad
commission in the country sad they have In
system of state grain inspection
which is being quoted and coDicc as a MODEL in
some OF the cider states
Ihere are now In operation 900 miles of
railroad in the state. an increase Of 73S miles in
744si. '' ''A A-'''e' ~ ''poA'eo' S''''
The earnings of these roads were as follows:
Gross. ..s22. 61., 1893 Il s25 lG2,s ls "a
Net. 1,456,GG2 GS 1864. 052 So
Taxes paid to the
state. .... Gl1.743 IS 612,545 "a
RESUME
During the five years it has been my privilege
to occupy the executive Office Minnesota has
experienced development unprecedented In
her history. and hardly equaled By that Of any
other community OF the country for a like period
Of time. Her growth in population has been
nearly 60 per cent, and her assessed real aud
personal estate has increased from :,71, 5S 96I
In 1881 to Si5S.424, III in 1856. The tndus-
TILES and business interests OF her people have
kept pace IN their development: with this growth
IN population and wealth, and the foundations
have been hroadened and strengthened for that
greatness OF empire which is the abundant
promise of our future destiny. j brief reference
% the measures and policy that ha ve specially
the administrai ion OF her public
interests during this period may not he regarded
out Of place i'll this connection.
So rapid growth has necessarily involved
argcly increased expenditures in the mainte-
nance OF the several departments OF the state
government and IN the enlargement and support
II her state institutions. Extraordinary ex-
have also been occasion"d by the ne
;essicy OF replacing public structures destroyed
~ tire. notably the state capitol. the state
prison and The first hospital for the insane. Ex-
,enditures for permanent public improvements
he past tive years have exceeded in the aC9re-
:atc 81 .5OO. 900. The interest also upon the
abroad adjustment bonds which represent
S<gto dol t,ax,o
burden upon the treasury in 1882. But not
these largely increased demands
lpon the state treasury they have been promptly
net and the public debt considerably reduced
Without adding to the burdens Of the people in
he way Of taxation: in fact. there has been psid
g taxes to the state less than was paid during
preceding: The averaze for the five
'ears ending with 1876 was $472,9sG2l DOR
'nnum. for the five years ending with 1881
473. S7s.5S and for the five ycara ending with
1886 $44S.6l797. This in view of The enor-
nously increased assessed valuation of tho state
would further show largely diminished rate Of
axation. The averaged rate for the first period
famed was 2S-1OO mills per annum and for
he last 46-1 mills. This showing has been
made possible mainly by largely augmented
evenues OF the state from other sources. espect-
lily receipts from railroad and insurance COM
'aniess The trust funds have been increased
rom &c. 27S. 911.72 in 1881 to So. COL .G37. IA In
$40. These additions are the proceeds OF tho
ale OF land and pine stumpaUe belonging to the
cvcIA luOls, except 81 ..SUO.l1 winch mas
,een realized as profit on the sale and exchange
# securities held by these funds Recent in
of these funds have been in the bonds
II the State Of Tennessee which have largely In
zeased in value since their purchase. and il sold
It the price at which the last purchase was
made = further profit of 49,, $40 would bs re-
llized.
As an agency in the line Of public reform and
in public expenses the state board
II corrections and charities was organized in
1885. Its efficiency in this service has been
hNNay i'm fhx. yvr~v,~ <A@l-
though its instrumentality in many of tho
counties of the state, In the Administered ion Of
heir local institutions and the decrease in cost
II maintaining their charitable and penal de-
;endents. The board have also instituted q
Uniform system of accounting, under which all
expenditures at our state institutions are spread
jefOrc the public in an iIteiliyiblc form.
The change from annual to biennial elections
vas made II 1883: As mea sure in The interest of